Boral — Shareholder Meeting (October 2003)
32 slides from Boral's shareholder meeting presentation, October 2003
Slide 1: Chairman's Address
Chairman’s Address Dr Ken Moss 1
Slide 2: Strong financial performance
Strong financial performance • Underlying profit up 47% to $283m • Return on Equity up from 9.9% to 13.2% • Sales revenue up 10% to $3.8bn • Return on Funds Employed up 36% to 16.4% • Operating cash flow up 25% to $489m • Debt / Equity down from 45% to 36% Improved shareholder returns • Share price
Slide 3: Increased dividends; Superior TSR
Increased dividends • FY03 final dividend of 12 cents, up 20% from last year – Up 9% from interim dividend of 11 cents • 100% franking on final dividend, up from 75% • Dividends for FY03 totalled $133m • Dividend payout ratio for FY03 was 47% Superior TSR Annualised Total Shareholder Returns (TSR)*
Slide 4: Improving safety, quality and environmental outcomes
Improving safety, quality and environmental outcomes Sustainable Development Assessment 2001 Scores 2003 Targets 1.5 1.8 Australian Construction Materials 1.6 2.0 Cement 1.6 2.0 Clay & Concrete Products 1.6 2.1 Plasterboard 1.5 1.9 Timber 1.8 USA 2.2 1.6 Boral 2.0 0 0.5 1 1.5 2 2.5 3 3.5 4 Level 1 L
Slide 5: Corporate Governance
Corporate Governance • Committed to ensuring that policies and practices reflect good governance • Adopted ASX Corporate Governance guidelines - Board of Directors - Risk & Audit - Remuneration • High standards of ethical behaviour expected • Well established set of corporate Values Strengthening ou
Slide 6: Managing Director's Comments
Managing Director’s Comments Mr Rod Pearse Objectives • Beat the weighted average cost of capital (WACC) on a sustainable basis through the building cycle • Deliver better financial returns than the competition in comparable markets • Deliver superior total shareholder returns (TSR) • Achieve superi
Slide 7: Operating performance
Operating performance • Group EBIT up 39% to $478m • EBIT to sales margin up from 9.8% to 12.5% • Strong Australian housing market & cyclical recovery in Australian non-dwelling work; Resilience in USA; continued growth in Asia • Australian EBIT up 56% to $357m • US EBIT up 14% to US$66m (steady at
Slide 8: US market remains robust
US market remains robust USA Brick States* – Value of Work Commenced US$92, (Billions). Seasonally Adjusted 180 160 140 Non- 120 dwelling 100 80 60 Dwelling 40 20 0 FY89 FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03e FY04f FY05f FY06f FY07f Forecast * "Brick States" - Alabama
Slide 9: Strong resource and market positions
Strong resource and market positions 12,620 employees 8 countries 583 Total operating sites (excludes distribution) 43 ASIA Plasterboard* Indonesia #1 Korea #1 Thailand #1 Malaysia #1 China (east) #1 The Philippines #1 61 USA Indonesia Concrete #1 Bricks #1 479 AUSTRALIA Clay Rooftiles #1 Concrete R
Slide 10: Leading positions in Construction Materials and Building Products
Leading positions in Construction Materials Leading positions in Building Products 10
Slide 11: Leading positions in Asia; Boral's Strategic Intent
Leading positions in Asia Boral’s Strategic Intent “Boral intends to be a value(s) and market driven, focused building and construction materials supplier operating in Australia and increasingly offshore” 11
Slide 12: Innovation through focused product development
Innovation through focused product development Creating value and inspiration for customers 12
Slide 13: Getting closer to our end markets; Safety
Getting closer to our end markets Safety Lost Time Injury Frequency Rate* Hours Lost % 18 0.40 18 0.39 16 0.35 14 0.30 0.30 12 0.25 12 0.25 0.24 10 0.20 8 9 9 0.15 0.17 0.15 6 0.14 0.10 4 5 5 4 2 0.05 0 0.00 FY97 FY98 FY99 FY00 FY97 FY98 FY01 FY02 FY99 FY00 FY03 FY01 FY02 FY03 *Rate per 1 million ho
Slide 14: Outlook for FY2004
Improving safety, quality and environmental outcomes Outlook for FY2004 • Sep-03 quarter profit significantly ahead of Sep-02 quarter and significantly ahead of expectations • Order books for businesses supplying Australian dwellings market remain strong • Non-dwelling and infrastructure approvals i
Slide 15: Community partnerships; Resolution 1
Making a real contribution through community partnerships Resolution 1 Financial Reports 15
Slide 16: Resolution 1: Proxy Votes
Resolution 1: Financial Reports Proxy Votes % to be cast for the resolution* FOR 216,163,410 OPEN 22,607,423 99.8% AGAINST 360,506 * On basis open proxies are voted FOR Resolution 2 Election of Directors 16
Slide 17: Resolution 2(a): Election of John Cloney
Resolution 2(a): Election of John Cloney Resolution 2(a): Election of John Cloney Proxy Votes % to be cast for the resolution* FOR 223,481,362 OPEN 22,621,189 98.5% AGAINST 3,728,011 * On basis open proxies are voted FOR 17
Slide 18: Resolution 2(b): Election of Elizabeth Alexander
Focused on delivering shareholder value Resolution 2(b): Election of Elizabeth Alexander 18
Slide 19: Resolution 2(b): Proxy Votes
Resolution 2(b): Election of Elizabeth Alexander Proxy Votes % to be cast for the resolution* FOR 216,947,127 OPEN 22,602,524 96.8% AGAINST 7,955,349 * On basis open proxies are voted FOR Resolution 2(c): Election of Tony D’Aloisio 19
Slide 20: Resolution 2(c): Election of Tony D'Aloisio
Resolution 2(c): Election of Tony D’Aloisio Proxy Votes % to be cast for the resolution* FOR 221,252,440 OPEN 22,738,119 98.6% AGAINST 3,369,598 * On basis open proxies are voted FOR Resolution 3 Adoption of New Constitution & Renewal of Proportional Takeover Approval Article 20
Slide 21: Resolution 3: Proxy Votes
Resolution 3: New Constitution / Takeover Article Proxy Votes % to be cast for the resolution* FOR 212,147,568 OPEN 22,849,698 94.0% AGAINST 14,882,635 * On basis open proxies are voted FOR Resolution 4 Non-Executive Directors’ Remuneration 21
Slide 22: Non-executive Director's Remuneration
Non-executive Director’s Remuneration Current Board & 30% Gross-up for Total A$ Committee Fees Retiring Allowance Remuneration Ken Moss 150,000 45,000 195,000 (Chairman) Elizabeth Alexander (Audit 67,000 20,100 87,100 Committee Chair) Audit Committee 64,000 19,200 83,200 Member Compensation Committe
Slide 23: Resolution 5: Non-Executive Directors' Share Plan
Resolution 5 Amendment of Non-Executive Directors’ Share Plan Resolution 5: Non-executive Directors’ Share Plan Proxy Votes % to be cast for the resolution* FOR 213,543,297 OPEN 18,337,836 95.1% AGAINST 11,905,732 * On basis open proxies are voted FOR 23
Slide 24: Resolution 6: Employee Incentive Plans
Resolution 6 Employee Incentive Plans Resolution 6: Employee Incentive Plans Proxy Votes % to be cast for the resolution* FOR 212,950,256 OPEN 22,418,906 96.6% AGAINST 8,390,318 * On basis open proxies are voted FOR 24
Slide 25: Grant of Options to Mr Rod Pearse
Resolution 7 Grant of Options to Mr Rod Pearse Options exercise hurdle If at any time during the % of options which become exercise period Boral’s TSR exercisable Does not reach the 50th percentile of the TSR of the 0% ASX Top 100 Reaches the 50th percentile of the TSR of the ASX Top 100 50% Reaches
Slide 26: TSR for options exercised
TSR for options exercised Annualised Total Shareholder Returns (TSR) of Reference Group From demerger to 30 June 2003 75th percentile 50th percentile 25th percentile 31% Boral • Rod Pearse exercised 750,000 options on 27 August 2003 which were granted on 1 March 2000 • 100% of these options were exe
Slide 27: Resolution 7: Proxy Votes
Resolution 7: Grant of Mr Rod Pearse’s options Proxy Votes % to be cast for the resolution* FOR 169,958,647 OPEN 22,377,341 85.8% AGAINST 31,722,841 * On basis open proxies are voted FOR Resolution 8 Resolution proposed by “Boral Green Shareholders 27
Slide 28: Resolution 8: Proxy Votes
Resolution 8: Resolution proposed by “Boral Green Shareholders” Proxy Votes % to be cast for the resolution* FOR 27,271,664 OPEN 10,310,373 10.7% AGAINST 216,103,138 * On basis open proxies are voted AGAINST Resolutions 9 to 14 Resolutions proposed by shareholders associated with the TWU and “Boral
Slide 29: Resolution 9: Amendment to Constitution - Health and Safety Management
Resolution 9: Amendment to Constitution - Health and Safety Management Proxy Votes % to be cast for the resolution* FOR 37,320,140 OPEN 10,295,284 16.3% AGAINST 180,707,571 * On basis open proxies are voted AGAINST Resolution 10: Amendment to Constitution - Directors’ Remuneration Proxy Votes % to b
Slide 30: Resolution 11: Executive Options
Resolution 11: Executive Options Proxy Votes % to be cast for the resolution* FOR 20,346,668 OPEN 10,249,188 8.1% AGAINST 220,192,053 * On basis open proxies are voted AGAINST Resolution 12: Long Term Incentives Proxy Votes % to be cast for the resolution* FOR 14,678,896 OPEN 10,313,705 6.1% AGAINST
Slide 31: Resolution 13: Short Term Incentive Remuneration
Resolution 13: Short Term Incentive Remuneration for Executive Directors Proxy Votes % to be cast for the resolution* FOR 11,751,662 OPEN 10,283,286 4.8% AGAINST 220,266,676 * On basis open proxies are voted AGAINST Resolution 14: TWU Remuneration Safety Targets Proxy Votes % to be cast for the reso
Slide 32: We are a value(s) & market driven company
We are a value(s) & market driven company. BORAL LIMITED ANNUAL GENERAL MEETING 2003 32